My latest analysis for MIPA Institute!
Doing Business in Morocco: Significant Achievements but merely on Paper
mipa.institute
Doing Business in Morocco: Significant Achievements but merely on Paper
mipa.institute
While Morocco has made, over the past few years, notable progress in the World Bank’s Doing Business index.
This, however, had almost no economic impact because the country did not make tangible progress in the fields of governance, economic freedom, property rights protection, and fight against corruption.
Instead of seeing Morocco’s progress in the “Business Climate” index reflected on its economic growth rate, we saw the opposite.
Over the 1998–2008 decade, and at the time when Morocco ranked off the top 100 on the DB index, Morocco reported growth rates ranging from 3% and 7%. While in the course of the 2009-2019 decade, when Morocco’s ranking improved, growth rates were often considerably lower.
The contradiction between increased ranking in Doing Business index and low growth rates is due to the nature of the institutional environment in Morocco, particularly the fragile rule of law institutions, poorgovernance and protection of property rights, and corruption.
These indicators reflect the structural barriers to investment, which made the World Bank’s Doing Business ranking more of a technical endeavour that does not accurately capture the reality and complexity of the Business Climate in the country.
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